3RD AFI GLOBAL POLICY FORUM 29 SEPTEMBER 2011

Flora Lugangira RutabanzibwaBank of Tanzania

A BRIEF A BRIEF TANZANIA'S EXPERIENCE IN FINANCIAL TANZANIA'S EXPERIENCE IN FINANCIAL

EDUCATIONEDUCATION

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RATIONALE:

-2006/9 Financial Access Strands: very low access-One of key dd-side barriers: high financial illiteracy (20% rural)

Source: FinScope 2006 and 2009

9.1%

2.1%

35.1% 53.7%

12.4%

4.3%

27.3% 56.0%

2006-21 m

2009-22.3m

   FI - Formally Included    SI - Semi Formal

   II - Informally Included    E - Excluded

DEVELOPMENT PROCESS:

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Flag areas/issues: Champion: -BoT continued to highlight problem in national

forums: →FE emerged as a critical national issue;

-Rural & Micro Finance Technical Team of the Financial Sector Reform Programme was tasked to spearhead national response to systemic illiteracy;

Coordination: T/team was a PPP under Bank of Tanzania & co-opted Ministry of Educ.

New Concept: -Technical Support (consultant, international peer review, exposure visits: facilitate team in undertaking a

FE diagnostic study -Interest groups meetings for awareness creation & consensus building

Study Period: > a year (approval June 2011)Study Results: FE Framework under BoT & recommendation for a

Financial Capability baseline survey and consumer protection framework

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NATIONAL FE FRAMEWORK

Part of the broad approach of Consumer Protection (3 pillars)

Aim: Educate stakeholders on importance of FE &

potential roles; Optimize resources through initiative coordination

& partnership; Guide stakeholders; Establish mechanism to measure national

progressComponents:

Consumer strategy to enhance financial capability through interest groups for each market segment;

Coordination Mechanism under the Bank (Policy Team (PPP)– Secretariat – Technical Team(PPP): working instruments

M&E Framework

Challenges & Key Question Areas

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At Stage of Setting up a Secretariat:

Severe shortage of skills in FE; how to balance the urgent need to get things done through use of external technical assistance & building local skills;

How best to handle FE with the existence of a financial consumer protection framework: should the 2 issues be handled by different entities?

Which market segment is of high priority to start with?

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END - THANK YOU!